Capitalism Needs Regulation – Why Max Keiser is Correct and Libertarians are Mistaken

[stockholmer]

http://www.goldstockbull.com/articles/capitalism-needs-regulation-max-keiser-correct-libertarians-mistaken/


One of my colleagues, Jeff Berwick, recently appeared on the program “On the Edge with Max Keiser.” http://www.youtube.com/watch?feature=player_embedded&v=cGNM0ZnkeA0 The end of the interview featured a brief disagreement between Max and Jeff regarding whether the markets need a “referee.” I have generally been of the Libertarian mindset for most of my adult life, but this question provoked a debate that led me to disagree with Jeff, anarcho-capitalists and some Libertarians that are revered in the precious metals world.

While these types of debates often degrade into personal attacks, I will try to avoid this trap and simply focus on the ideas being proposed and explanations of why I believe some of the ideas are far superior to others. In the end, my motivation is simply to see a shift away from our current economic and political trajectory, in favor of a system that maximized prosperity, respects the environment and permits the long-term sustainability of our planet and species. I would think this could be a common goal, regardless of which political party or economic system you support.

Let me first say that I acknowledge the system is broken, the government has been corrupted and there has a been a great overreach into our personal lives. I am in favor of a smaller government, a non-interventionist military policy, the repeal of the Patriot Act, an end to the “war on drugs” and many of the other common sense positions trumpeted by Libertarians.

I can also understand the demand for lower taxes, especially given the way our government wastes taxpayer dollars on illegal and immoral wars, foreign aid (buying political favor), bank bailouts, no-bid contracts and other kickbacks to their campaign contributors. Also, I believe the idea of sound money that is finite and cannot be printed out of thin air would be vastly superior to our current debt-based fiat money system.


snip

[Scuba]

1. Isn't it rather obvious?

[krispos42]

2. Remember, these are the same people that cut firefighters in favor of "unregulated combustion"

A la Rick Perry.


The economy is a tool, like fire. Only a fucking idiot would desire to let either operate without any controls.


Ergo, Rick Perry is a fucking idiot.

[rfranklin]

3. We learned that lesson a hundred years ago...

and then we let them turn the clock back again with that smiling turd of a corporate spokesperson by the name of Ronald Reagan.

[Enthusiast]

12. Bingo! nt

[PETRUS]

4. As far as I'm concerned

There is no such thing as unregulated capitalism. The limited liability corporation is a form of regulation (legal protection). Likewise patent law, or contract law. There may be some libertarian theorists who imagine something different but business leaders consistently push for government interference, just as long as it's in their favor. When they say they are opposed to regulation, they only mean certain kinds of regulation.

Also, capitalists have a strong track record of undoing regulation that provides for the public good but limits their ability to control markets and make the highest possible short term gains. Capitalism is a dangerous way to organize ourselves economically.

[closeupready]

5. Exactly. This post alone should be its own thread.

K&R

[izquierdista]

6. I'll give you some examples of unregulated capitalism

Pigeon drops
Ponzi schemes
Bait and switch
Three card Monte
Fortune telling
Short count

But I do find that there is a more concise term that can be used in place of "unregulated capitalism" -- fraud.

[PETRUS]

7. Well dang... I must concede your point. nt

[MisterP]

8. that's Karl Polanyi's thesis: the markets need the state that they erode, attack, undermine

it tends to monopoly and anarchy and wants to turn everything into a portfolio (see Fernando Coronil on "particle finance")

[truedelphi]

10. Agree that these words of yours would make an excellent OP. n/t

[GeorgeGist]

9. How much greed is acceptable?

I believe the correct answer is zero.

[Modern_Matthew]

11. Capitalism needs to die. nt

[JVS]

13. The question of whether capitalism needs regulation was answered long ago.

The question is about if it is possible to regulate it or if the way it allocates wealth make it inevitable that attempted regulation will be subverted.